Nvidia's Jensen Huang isn't feeling the "AI bubble"

"All eyes were on Nvidia's quarterly earnings announcement on Wednesday, as investors looked for signs of weakness indicating that the so-called " AI bubble" is about to deflate. In fact, Nvidia appears to be selling graphics processing unit (GPU) chips for data centers as fast as it can make them. On the call, Nvidia reported better-than-expected revenues of $57 billion for its October-ending quarter, a 62% increase over the same quarter last year. Revenues rose by $10 billion, or 22%, from the prior quarter."

"As a result, Nvidia shares rose 5% after the earnings were announced at market close on Wednesday. That bump created an additional $205 billion of market capitalization. "There's been a lot of talk about an AI bubble," Nvidia CEO Jensen Huang said to open his comments during an earnings call with analysts Wednesday. "But from our vantage point we're seeing something very different.""

""Let me remind you that Nvidia is unlike any other accelerator company - we address every phase of AI," he said. Huang explained that business software that has traditionally run on CPUs is increasingly starting to run on accelerators, specifically the GPUs that Nvidia sells. He says many traditional business tasks are being done by generative AI systems, replacing classical machine learning for things like content suggestion, ad placement, and content moderation."

Nvidia reported $57 billion in revenue for the October-ending quarter, a 62% year-over-year increase and a 22% rise from the prior quarter, and projected $65 billion for the current quarter. Shares rose 5% after the report, adding about $205 billion in market capitalization. Data-center GPUs are being sold as fast as they can be produced, reflecting strong demand. Concerns about an AI valuation bubble exist, but demand for accelerators appears robust. Business software is shifting from CPUs to GPUs, and generative AI is replacing classical machine learning for tasks such as content suggestion, ad placement, and moderation.

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